18 March 2017
I have a client (individual) who is into supply of labour to body corporates only. service tax is to be paid by the body corporates under reverse charge mechanism. in such a situation, is the individual providing services needs to take registration or not?
18 March 2017
hello sir. thank you so much for your prompt response. the query continues. now just like you said he isn't liable to pay tax hence registration not required. now if he provides his service to an individual then is he liable to take registration and pay taxes from the 1st rupee collected or the exemption of Rs. 10L is allowed (assuming his service to body corporates exceeds Rs. 10L)
1st Part - Services provided to body corporate on which reverse charge is applicable In this case as already mentioned he is not required to rake registration whatever be the amount of services.
2nd Part - Services provided to persons other than body corporates. In this case he is required to take registration only when such services exceeds Rs. 9 Lakhs, This has no relation with services provided to body corporates, even if services provided to body corporates is more than Rs. 10 lakhs registration is required only if services provided to others is more than Rs. 9 lakhs
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